What Is Gate.io Simple Earn and How Does It Work?

Introduction

Are there any lower-risk options available to investors in this tumultuous market of uncertainty? Well, Simple Earn is a financial product by Gate.io that allows you to use your idle funds in a safe and easy way.

Supporting most major cryptos, easy to subscribe to and redeem, and earning interest hourly, all of these make Simple Earn your best investment option.

For subscribers, Simple Earn basically works like a savings account in the bank, from which you will receive small amounts of interest when your assets are stored. The interest is actually the fees paid by other borrowers.

Now, with a borrowing volume of $22 million and a lending volume of $2.49 million, Simple Earn quickly become many users’ first choice due to its easy-to-use operation process.

What is Simple Earn

Simply put, Simple Earn matches idle assets with users who need to borrow money, calculates the annualized return on an hourly basis, and settles the interest in real-time. As a result, the interest earned by a Simple Earn subscriber is the fee paid by the other borrower.

Simple Earn is similar to a P2P crypto lending service, with the interest calculated on an hourly basis.

Subscribers (creditors) can best utilize their funds to earn hourly interest in an easy and fast way, while borrowers get the opportunity to borrow at a lower rate with convenient and efficient repayment.

How does Simple Earn work

The system will determine whether the lending is successful based on the “Minimum Interest Rate” you set to match the “actual demand for the loan”.

The “Minimum Interest Rate” is the lowest possible rate of return that you are willing to accept for lending your assets. In the example below, the minimum lending rate is set at 0.01‱ per hour, which is the same as the estimated next hourly rate below, so you have the opportunity to lend USDT at 0.88% APR.

Even if you are not sure how to set it, it doesn’t matter. If the interest rate is less than 0.01‱ per hour, the system will display the warning “As the Lowest APR ≥ Est. APR Next Hour, the offer is likely to fail to be lent out”

To lend the asset immediately in the next hour, the simplest way is to refer to the “Est. APR next hour.” If you want to keep waiting to lend at a higher interest rate, you can surely set a higher interest rate than estimated, but it may be difficult to lend, so subscribers must make their own assessment.

Why do people borrow?

The reason why interest can be generated is that another user will be paying for the costs. For experienced traders, leveraging helps to increase positions and get higher returns.

Because cryptocurrencies are more volatile in the short term, some investors are willing to pay higher interest rates to borrow money in the short term to earn higher returns. However, lending investors do not need to be concerned about the loss of the principal because immediate liquidation will be required when the trader’s holdings fall to ensure the return of the lenders’ principal.

How to set the Lending interest rate

You can view the previous APR, estimated next APR, market depth, 24-hour total borrowing volume, and so on for each crypto on the Simple Earn.

The total amount borrowed is a useful metric for decision. Higher borrowing volume indicates that more people are willing to pay interest to borrow the asset, meaning that borrowing demand is relatively high.

The most important thing is to set the minimum lending interest rate based on the system’s estimated “Est. Next APR,” when setting it, the following 3 situations may occur according to the change of interest rate.

Features of Simple Earn

You already know that the primary mechanism of Simple Earn is lending assets and earning interest.

Compared to other financial products such as Deposit, SharkFin, and Dual Currency,Simple Earn is defined by free rate setting, flexible asset access, and multiple token options, which are the primary reasons for its rapid popularity among users.

1. Individualized Lending Rate

Set the minimum interest rate at which you will lend. If lenders want to pay lower interest rates than you anticipate, you can refuse to lend the asset. However, you will not be able to receive interest if you do not lend.

It is recommended that users first set the “expected interest rate” according to the market. If you can successfully lend the asset several times, it also indicates the market demand; trying to hang a higher interest rate may obtain a higher interest income.

2. Easy access and prompt payment of earnings

Because the interest rate on Simple Earn is calculated hourly, access to assets is quite flexible. That means that if you lend for one hour, you can redeem the principal plus interest the following hour or continue to lend at that rate.

In contrast to SharkFin and Dual Currency products, which require asset locking for a set period, Simple Earn’s flexible access allows investors to adjust their allocation more quickly in a volatile market.

3. Multiple options, including support for hundreds of coins such as BTC and ETH.

In general, lending in mainstream currencies such as BTC, ETH, and USDT is the most popular and with the highest demand. However, Gate Simple Earn still supports hundreds of crypto lending services in response to various investor demands.

Risks of Simple Earn

Simple Earn is a crypto-denominated financial service. While you hold the currency, the market price will continue to change, and even if you can earn the currency-denominated interest through Simple Earn, the fiat value may still shrink due to bad market conditions.

However, if you are bullish on a specific target, don’t worry too much about short-term fluctuations, and Simple Earn will be an effective way to use your idle assets.

Simply holding a specific token will not generate income, so why not lend your assets through Simple Earn to earn interest income?

How to subscribe to Gate.io Simple Earn

1. Earn >Simple Earn

To access the page, first go to the Gate website and click on “Simple Earn.” The page is sorted by the total amount borrowed in 24 hours by default. In addition, you can view the APR from highest to lowest by clicking the symbols next to the text.

2. Select the lending token

Scroll down the menu and select the token you want to lend, here is an example of lending 0.1 ETH.

In the “Minimum Interest Rate” part, enter the minimum lending rate, and the system will automatically convert to an annualized rate.

In the following example, enter 0.01‱ / hour interest rate, which is equivalent to 0.88% annualized interest rate to lend 0.1 ETH.

You will be requested to enter the fund password, and the successful lending will be displayed after confirmation.

3. Check the lending status and redemption

Following successful lending, you can view the lending status in “My Assets,” including the current lending quantity, accumulated interest, expected APR, and so on.

If you want to withdraw the asset, click “Redeem” and enter the amount; a successful redemption notification will appear. Assets that have not been lent can be retrieved directly, and assets that have been lent will be returned in the next hour’s time.

Conclusion

Simple Earn is a financial product that allows investors to make better use of their idle assets. It is especially suitable for holders who are optimistic about the market and want to make crypto-denominated investments. They are more concerned with the asset’s future value rather than the short-term book value.

Although it is easy to use, subscribing to Simple Earn means taking a long position. It is prudent to know the risk of price fluctuations and to establish a stop-loss price because the market is ever-changing.